Swissquote Group Holdings SA, the prominent Swiss-based banking and investment firm, announced earlier today that they have successfully launched their first bitcoin certificate. This feature will allow more traditional investors to partake in the exciting cryptocurrency market in a safer and more familiar environment, such as the SIX Swiss Exchange. The bitcoin certificate feature will give investors additional protection from the volatile market, while still allowing them to reap the benefits from participating in the industry.
Swissquote has been progressive in its adoption of bitcoin. Earlier this year, the firm became the first European-based online banking service to offer clients bitcoin investing options via the Swissquote trading system.
The bitcoin volatility factor will become significantly more manageable with the bitcoin certificate option. By using a specific algorithm that has been designed by the bank's Quantitative Asset Management Team, the market's volatility can be foreseen and prevented, thereby giving investors more protection. The algorithm will be able to predict certain short-term market trajectories by analyzing certain technicalities as well as opinions voiced on social media platforms.
Following the analysis, the algorithm can successfully manage the bitcoin certificate by using an automated system. Currently, the overwhelming majority of the certificate portfolio is dedicated to bitcoin. The figures range between 60%-100%, and is dependent on the algorithm's near-future market predictions. Once the algorithm detects a price decrease, the portfolio's cash position rises 40% to minimize the volatility factor. However, once the algorithm detects a near future increase, the entire portfolio invests in Bitcoin.
While many experts believe that Bitcoin is the new frontier when it comes to financial technology, several average and mainstream investors are still discouraged by its volatility. According to Swissquote’s Head of Market Strategy, Peter Rosenstreich, their latest strategy minimizes damage in the case of market volatility, and is likely to appeal to users wishing to participate in the market.
The certificate will enable the average investor with an opportunity to access Bitcoin in a more safe and transparent manner. In addition, the investor won't need extensive tech-knowledge or digital wallet solutions, as everything will be provided on the platform. The bank predicts that investors will comply with a marginally lower return of investment, considering the safety and convenience of the service.
Swissquote’s bitcoin certificate will use US dollar denominations. Any potential investor is required to submit a minimum initial investment of $1,000. Following initial investment, investors will be charged a 1.5% fee with added transaction costs.
Swissquote has been progressive in its adoption of bitcoin. Earlier this year, the firm became the first European-based online banking service to offer clients bitcoin investing options via the Swissquote trading system.
The bitcoin volatility factor will become significantly more manageable with the bitcoin certificate option. By using a specific algorithm that has been designed by the bank's Quantitative Asset Management Team, the market's volatility can be foreseen and prevented, thereby giving investors more protection. The algorithm will be able to predict certain short-term market trajectories by analyzing certain technicalities as well as opinions voiced on social media platforms.
Following the analysis, the algorithm can successfully manage the bitcoin certificate by using an automated system. Currently, the overwhelming majority of the certificate portfolio is dedicated to bitcoin. The figures range between 60%-100%, and is dependent on the algorithm's near-future market predictions. Once the algorithm detects a price decrease, the portfolio's cash position rises 40% to minimize the volatility factor. However, once the algorithm detects a near future increase, the entire portfolio invests in Bitcoin.
While many experts believe that Bitcoin is the new frontier when it comes to financial technology, several average and mainstream investors are still discouraged by its volatility. According to Swissquote’s Head of Market Strategy, Peter Rosenstreich, their latest strategy minimizes damage in the case of market volatility, and is likely to appeal to users wishing to participate in the market.
The certificate will enable the average investor with an opportunity to access Bitcoin in a more safe and transparent manner. In addition, the investor won't need extensive tech-knowledge or digital wallet solutions, as everything will be provided on the platform. The bank predicts that investors will comply with a marginally lower return of investment, considering the safety and convenience of the service.
Swissquote’s bitcoin certificate will use US dollar denominations. Any potential investor is required to submit a minimum initial investment of $1,000. Following initial investment, investors will be charged a 1.5% fee with added transaction costs.